Dow futures tumble 564 pts as oil surges on Iran tensions

Dow futures fell 564 points, or about 1.1%, after President Donald Trump declared the Iran peace memorandum “over,” lifting oil prices and sending Nasdaq 100 futures to a four-week low ahead of Federal Reserve minutes due later Wednesday. S&P 500 futures dropped roughly 0.9%.

Trump made the remarks in Ankara, saying the memorandum aimed at ending the war with Iran was finished and signaling little interest in further engagement with Tehran. The comments followed recent strikes and counterstrikes in the region and reduced hopes that a fragile ceasefire would expand into a broader settlement.

Brent and West Texas Intermediate crude each rose more than 5% as traders added a risk premium for shipments through the Strait of Hormuz. Iran’s Revolutionary Guards reported targeting U.S. military sites in Bahrain and Kuwait after Washington launched strikes on Iran; U.S. officials attributed the U.S. action to earlier attacks on tankers in the strait. Even limited disruption in that waterway can push oil prices higher and affect inflation expectations.

Energy producers outperformed in premarket trading. Chevron rose about 2.4%, Exxon Mobil gained roughly 3% and ConocoPhillips advanced near 2.2%. Smaller oil companies including Devon Energy, Occidental Petroleum, APA and Diamondback Energy also moved higher. Trading suggested investors were reallocating toward companies that stand to benefit from higher crude while trimming positions in growth shares sensitive to rising interest rates.

Market attention also turned to the Fed minutes for the June meeting, due later in the session. Traders will look for discussion of inflation risks, stress in energy markets and officials’ views on growth. CME FedWatch pricing indicates at least one rate hike is considered possible by the end of 2026, a view the minutes could help clarify.

U.S. equities had recorded gains in recent weeks, leaving some areas of the market more sensitive to shocks that lift inflation or yields. Early session flows pointed to sector rotation rather than a broad exodus from stocks.